Simplex surges on order overflow

DALAL STREET SPIKES

Simplex Infrastructures rose 4.97 per cent to Rs 394 on phenomenally higher volumes of 52,981 after the company said it has orders worth of Rs 825 crore.

The company, which derived nearly half of these orders from overseas, has business interests in the infrastructure, power, urban utilities and the construction space.

Simplex Infrastructures, whose overseas presence is mostly confined to West Asia, has also been eying markets in North Africa, South East and Central Asia.

Overseas operations currently account for around 15 per cent of the company's order-book and 10 per cent of its revenues. Simplex has also been in the news recently for bagging a huge contract from Delhi Metro Corporation worth Rs 212.12 crore under the phase II.

The stock has generally had a mixed fortune in December, falling from a high of Rs 400 on December 1 to Rs 371 on December 13 to Rs 375 on December 22.

The company did not record strong financial performance in the first half of this financial year with the reported profit after tax actually falling by 11 per cent over the same period last year. The stock currently trades at 8 times its 2005-06 EPS.